Syed Abdul Karim alias 'Tunda' has told interrogators that Iqbal Kana, allegedly the biggest dealer of fake Indian currency notes from across the border, used to get counterfeit notes from a Pakistani army officer to push them into India', inteligence sources said.

According to
the Delhi Police special cell, Kana got fake notes printed in Islamabad and Peshwar in Pakistan from an Inter Services Intelligence (ISI) brigadier, whose identity he was unsure of, through a conduit. Sources claimed Tunda was also in touch with one colonel Mumtaz of the ISI.

"The amount that he was asked to smuggle the notes into India through his network of Bangladeshi immigrants varied but would be in crores each time," said a special cell officer.

Investigators claimed that the 70-year-old terror suspect had admitted to having made extortion calls posing as an ISI operative to the Indo-Pak Trade Centre, a local association of merchants based in Lahore, his chosen area of residence.

After the extortion demand, the special cell claimed, a complaint had been lodged against him by representatives of the association. A swift raid by the local Pakistani police had led to the recovery of Rs. 9.93 crore in fake Indian notes from his residential premises, as HT had reported on Tuesday.

"Given his links with the ISI, Tunda was let off after being warned to mend his ways. He had then fallen out with Kana, who is also of Indian origin. The two, however, started their activities again after Kana apologised to him," the officer said.

The police claimed Tunda's payday ranged from Rs. 4 to Rs. 14 lakh for every consignment of fake notes he was successfully able to get smuggled and distributed in India.

"He has been sent to our custody for four more days. His interrogation is under way," the officer said.